Offering, with 20% greenshoe, finances planned economic assessment
By Devika Patel and Stephanie N. Rotondo
Knoxville, Tenn., Jan. 21 - Energizer Resources Inc. said it will conduct a non-brokered private placement of units. The offering will raise $15 million and has a 20% greenshoe.
The company will sell units of one common share and a half-share warrant at $0.45 apiece. The whole warrants are exercisable at $0.75 for two years. The strike price reflects a 50% premium to the Jan. 20 closing share price of $0.50.
"The terms are excellent from a company perspective and from an investor perspective," Julie Lee Harrs, president and chief operating officer, said in an interview with Prospect News. She noted that the price was "a little bit of a discount" to the 20-day weighted average stock price.
That discount, she said, was resulting in "overwhelming response" from potential investors.
"We've been getting lots of phone calls from people wanting to participate in this financing," she said. Additionally, the company's stock price was moving up and on large trading volume, according to Harrs.
Proceeds will be used to complete a National Instrument 43-101 preliminary economic assessment, including advanced metallurgical test work to optimize the process flow sheet, for additional exploration and for general working capital requirements.
The Toronto company explores for vanadium, uranium, gold and other minerals.
| Issuer: | Energizer Resources Inc.
|
| Issue: | Units of one common share and a half- share warrant
|
| Amount: | $15 million
|
| Greenshoe: | 20%
|
| Price: | $0.45
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | $0.75
|
| Agent: | Non-brokered
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| Pricing date: | Jan. 21
|
| Stock symbol: | OTCBB: ENZR
|
| Stock price: | $0.50 at close Jan. 20
|
| Market capitalization: | $58.02 million
|
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